FAST FIVE: JPMorgan Finds That Shorts Across The Globe Have Capitulated

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JPMorgan Finds That Shorts Across The Globe Have Capitulated Tyler Durden Sat, 08/01/2020 – 17:30 Three months ago, shortly after the March crash bottom, JPMorgan's strategist Nikolas Panigirtzoglou predicted that stocks would rise, among other things, because there was a massive short overhang, one which would squeeze prices higher as the Fed injected liquidity, providing a secondary thrust to the market.

The argument at the time was that while the post-virus short base in individual US stocks had been largely covered, short covering had looked a lot less advanced outside US stocks.

To JPM, this raises the chance that the past two months outperformance of non-US vs.

US equities is close to being exhausted “and that going forward US stocks are more likely to resume their outperformance trend.” Why the pro-US bias.

Because as the JPM strategist noted before, there is a modest remaining short base to be covered in US stocks at an index level even as the previous short base at individual stock level has been more than fully covered.

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